CommunityLink

Durham, NC

Business & Industry

Business is thriving in the City of Durham. The prime location, enviable quality of life, low cost of living and doing business, and a workforce comprised of individuals from a variety of backgrounds make it a great place to own a business. Businesses have the added benefit of a strong health care industry, great educational opportunities for their ­employees and families, and beautiful North Carolina weather.

Resurgence of Durham and the Triangle’s Economy

At the 2001 State of Durham’s Economy meeting, the guest speaker predicted that Durham would lose its manufacturing base to offshoring (sending manufacturing of products to another continent). For a short time he was partly right. One of the two factors that he did not include in his equation was inward investment (economic development being located here by international companies to manufacture or provide products for the U.S. market). The other factor was the need for our companies to protect intellectual property. While the demise in electronics assembly from 2000–2003 resulted in thousands of workers losing their jobs, the Durham Chamber of Commerce persevered to reshape Durham County’s manufacturing sector based upon the invaluable knowledge gained from Harvard Business School Professor Michael Porter’s Clusters of Innovation study and subsequent work spearheaded by the Research Triangle Regional Partnership.

In April, AW North Carolina announced its intent to invest another $130 million in two related announcements: first, that it is adding 68,000 square feet at its Treyburn location, and second, that it will hire 150 additional employees, thus continuing the positive momentum of Durham County’s economy. AW North Carolina is a manufacturer of high-quality transmission components and fully assembled automatic transmissions for Toyota Motor Manufacturing North America.

In 2004, Durham witnessed three companies — Cree, Merck and Silver Line — commit to investing $626 million to build new manufacturing capacity in Durham County, creating 1,300 new jobs. While Cree and Merck were making their decision to grow in Durham County, AW North Carolina was completing the last phase of its first Durham expansion (a pretty mean feat, considering the company announced its intent to build in Durham in 1999).

AW North Carolina’s growth has been the result of the
successful implementation of its business plan, allowing the company to capture additional business opportunities. Beginning in early 2006, additional equipment will be installed in an area that was designated for future growth within the current 750,000-square-foot facility. This expansion will bring AW North Carolina’s total investment within Durham County to over $390 million since its initial land purchase in 1998. AW North Carolina President Kanji Asai states, “Our history and ­commitment to hiring quality people to manufacture quality products has earned AWNC the privilege to increase our long-term commitment to our team members and our communities.”

The company will increase its total workforce from approximately 900 current team members to approximately 1,050. The additional hiring will begin in early 2006 and progress through 2007. Full production of the new lines is scheduled to begin in the spring of 2007.

“AW North Carolina has been fortunate to reach many successful milestones in our short history. This success has earned us the opportunity to add more production operations to our facility,” says Will Collins, AW North Carolina general manager, human resources. “We are excited to continue to expand our business in Durham County.”

In the span of approximately 12 months, four companies committed to invest a total of $756 million for additional manufacturing capacity, creating at least 1,420 additional production-oriented jobs.

During the past two years, Bowe Bell & Howell, Teleflex Medical, KBI BioPharma, Burt’s Bees, bioMerieux, and IPS, to name a few firms, have also committed to growing their manufacturing operations in Durham County. The future for manufacturing in Durham County is very much alive.

Complementing the resurgence in manufacturing, the Durham Chamber of Commerce worked closely with the North Carolina Department of Commerce and the Raleigh Chamber of Commerce to attract Credit Suisse First Boston’s new global operations center to Research Triangle Park. This $100 million project will create more than 400 new jobs in the region. The Durham Chamber of Commerce is working with its regional and state economic development partners to continue to build a regional financial services industry cluster. It is through the diversification of the regional economy that more economic stability and prosperity can be achieved.

Moreover, the Durham Chamber of Commerce is continuing its efforts to grow and diversify its strong biotechnology/
pharmaceutical industry base. Today 44 percent of North Carolina’s biotechnology/pharmaceutical companies are located in Durham County. This is no small statement, considering North Carolina and the Triangle are both ranked as third in the nation in terms of the number of biotechnology/pharmaceutical companies. Clearly, Durham County is the heart of North Carolina’s and the region’s burgeoning biotechnology/pharmaceutical industry.

Ted Connor, vice president for economic development with the Durham Chamber of Commerce, states, “Durham’s economic development team has learned several valuable lessons that are allowing the community to better cope with change and prepare the county’s economy for the future.” Connor adds, “Durham emphasizes a strong and dynamic economic development team approach that has contributed to a sustained period of economic development successes.”

Education
In greater Durham, finding and retaining qualified ­employees is easier, thanks to Durham Technical Community College. The college offers an employee program to businesses creating 12 new production jobs within one year. Pre-employment training is designed to the employer’s specifications, and the college can also assist businesses with employee selection at no cost. Once a workforce has been established, the college provides additional instruction and materials either at the college or on site. For more information on these and other programs,
contact the Durham Chamber of Commerce at 919-682-2133.

Many businesses have discovered that Durham is the perfect place for their company to grow and develop. Much of the success of local businesses can be attributed to the region’s outstanding workforce. Workers from a variety of fields and with a variety of skills live in the Durham area. Unemployment rates are low, and there is a strong pool from which to choose the perfect applicant. With the presence of Duke University and North Carolina Central University, residents of Durham are educated and close to any ­additional training that may be needed. There is a variety of skill sets, from general laborers to Ph.D. candidates. The multiple types of businesses already in Durham make it easy to find great employees, regardless of your business type.

Transportation
Another factor making Durham a great place to own a business is the close proximity to reliable transportation options.

Highway: Two interstates pass through Durham, with the newly expanded Interstate 85 running from Richmond, Virginia, to Atlanta, Georgia, and Interstate 40 connecting Wilmington, North Carolina, with Los Angeles, California. U.S. Highways 15 and 501 and state Highways 54, 55, 147 (the Durham freeway) and 751 round out Durham’s highway system. With this expansive network of roads, it is easy and cost-efficient to transport goods in and out of the area using the freeway system.

Air: For air transportation and shipping, the RDU International Airport is just 11 miles from downtown Durham and just five miles from Research Triangle Park. With over 230 daily departures and 26 major, regional and commuter carriers, it is quick and convenient to ship product in and out as well as to make it to your business meeting across the country.

Rail: Moving your freight by rail is another great option in Durham. The area is served by Norfolk Southern Railway and CSX Transportation. In addition, Amtrak provides passenger rail service.

Water: The Port of Wilmington is
only 150 miles southeast of the county and provides businesses with both warehouse space and shipping options. It was recently named one of the United States’ fastest-growing ports by Dun and Bradstreet and is designated as a Foreign Trade Zone.

Research Triangle Park

Many global companies have discovered that Research Triangle Park is an ideal place to locate. The world’s largest university-related research park was carved out of the Durham pinelands in the 1950s and 1960s. Today, companies including GlaxoSmithKline, IBM, Network Appliance Inc. and Underwriters Laboratories and agencies such as the EPA employ more than 45,000 at Research
Triangle Park.

Scientists working at Research Triangle Park have developed a wide range of products — everything from Astroturf to AZT — and work in a variety of fields, from biotechnology to environmental sciences to microelectronics. Nobel Prizes have been awarded for work done at the Research Triangle Park, and with the continued research, more will surely follow.

Durham Businesses

Many major companies have already opened for business in Durham. Each year, more businesses relocate or expand operations to Durham because of the favorable business environment.

Merck & Co.: This major pharmaceutical concern announced a new $300 million vaccine-manufacturing facility in Durham County in April 2004. Bringing an additional 200 jobs to the area, the facility is one more major pharmaceutical company in the City of Medicine, ­adding to the already strong medical/pharmaceutical industry in the region. The facility, which will be located in Durham’s Treyburn Corporate Park, should be up and running by 2008 and will be one more strong economic asset for the region. Merck & Co. is a global drug company with annual sales of over $20 billion.

AW North Carolina: One of the businesses already established in Treyburn Corporate Park is AW North Carolina. Opening its doors in 1998 as the first AW facility in the United States, AW North Carolina employs over 250 people manufacturing high-quality automotive transmissions. In April 2005, AW North Carolina announced its intent to invest another $130 million to add 68,000 square feet and hire 150 additional employees. Beginning in 2006, additional equipment will be installed within the 750,000-square-foot facility, bringing AW North Carolina’s total investment within Durham County to over $390 million since its initial land purchase in 1998. Additional hiring will also begin in early 2006, increasing the plant’s staff from its current 900 members to approximately 1,050. Full production of the new lines is scheduled to begin in spring 2007.

GlaxoSmithKline: This leading research-based pharmaceutical company is headquartered in the United Kingdom but is also an important part of the Research Triangle Park. The facility in Durham is a major research and ­development arm of the company, employing over 5,000. With annual sales of over $35 billion, GlaxoSmithKline is a stable company with a bright future. The mission of the company is to research ways to improve the quality of human life by enabling people to do more, feel better and live longer.

Small- to medium-size firms thrive in Durham as well. One example is Lee Air Conditioning, in business in Durham since 1951. Employing more than 130 workers, Lee Air Conditioning is a full-service mechanical engineering and contracting company specializing in all market segments, including commercial, industrial, institutional and residential mechanical services. A leader in mechanical engineering in the Triangle area, Lee Air Conditioning combines years of practical experience with professionally engineered designs to give customers all they expect and more.